Call for State to invest €200m in developing infrastructure

THE CONSTRUCTION Industry Federation is seeking a 200 million investment package from the Government for "labour-intensive and…

THE CONSTRUCTION Industry Federation is seeking a 200 million investment package from the Government for "labour-intensive and badly needed infrastructure projects".

Provision of school buildings and primary healthcare facilities would both save jobs and serve the State, the federation says. It has drawn up an alternative proposal, known as a build-and-leaseback scheme, to public-private partnerships that it expects to publish shortly to underpin such an initiative.

The scheme would require the builder to complete the infrastructure project before leasing it back to the State.

The federation issued the appeal during publication of its annual safety message in Galway yesterday. It called on its members to ensure secure fencing of building sites and safe storage and security of materials, construction vehicles and plant machinery over the Christmas break.

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Federation director general Tom Parlon said a survey of building, civil engineering, mechanical and electrical and specialist contracting firms indicated "widespread job losses" were "inevitable" in 2009, unless work could be provided in public-sector infrastructure projects.

"The exchequer would also benefit immediately. Every €100 million spent on infrastructure generates €47 million in taxes on direct labour and social welfare savings and has wider benefits in terms of increased spending," Mr Parlon said.

The federation has also highlighted investment potential in the system of main national secondary roads.

"The real benefits of the inter-urban motorways programme, which will be completed in 2010, will only become clear when the roads that feed into this network are also improved," Mr Parlon said.

Lorna Siggins

Lorna Siggins

Lorna Siggins is the former western and marine correspondent of The Irish Times